XTPL S.A.

Earnings Release • Jan 23, 2023

Title:Preliminary estimates of revenues from the sale of productsand services for Q4 and 2022

Legal basis:Article 17(1) MAR - inside information

Content of the Report:The Management Board of XTPL S.A. ["Issuer","Company", "XTPL"] hereby reports preliminary estimates of the Company'sconsolidated revenues from the sale of products and services for thefourth quarter and for the whole of 2022.

1. Estimated consolidated revenues from the sale of the Company'sproducts and services in the fourth quarter of 2022 were PLN 3,429thousand. This is a growth of 83% year-on-year from PLN 1,873 thousandachieved in the same period last year. This figure does not includeproceeds on account of grants related to the Issuer's implementation ofresearch and development projects.

2. Estimated consolidated revenues from the sale of the Company'sproducts and services in 2022 are PLN 10,063 thousand compared to PLN2,086 thousand posted in 2021, which means a nearly fivefold (4.82x)increase. The above revenues from the sale of products and services inQ4 2022 and 2022 do not include proceeds on account of grants related tothe Issuer's implementation of research and development projects.

The value of grant proceeds obtained by the Company in Q4 2022 was PLN2,087 thousand compared to PLN 1,803 thousand in Q4 2021. Cumulativelyfor 2022, this figure stands at PLN 5,912 thousand compared to PLN 4,455thousand in 2021. The Issuer's Management Board points out that inaccordance with the rules for accounting for those grants, part of theabove proceeds will be included in the Company's income statement for2022, while the remainder will be recognized in the balance sheet asdeferred income.

The strong increase in commercial revenues and the grant proceeds had asignificant positive impact on the Company's cash position. Theestimated value of the Company's cash as at 31 December 2022 was PLN5,800 thousand compared to PLN 3,358 thousand as at 30 September 2022and PLN 4,580 thousand as at 31 December 2021. This means an increase inthe cash level by approx. PLN 2,400 thousand in Q4 and an increase inthe cash level by approx. PLN 1,220 thousand per year. For comparison,in 2021 the change in cash was PLN -234 thousand in Q4 and PLN -5,894thousand throughout the year. The higher proceeds in Q4 2022 are theresult of advance payments made by clients as a result of execution ofsales orders for Delta Printing System devices for the Asian market.Those advance payments did not increase sales for 2022 but will besettled in full upon delivery of the devices to the client in 2023.

The strong increase in the Issuer's estimated revenues from the sale ofproducts and services, as presented above, results from progress in thecommercialization of the Company's technological solutions. This islargely owed to the activities in the area of industrial implementationsof the Company's technology, e.g. payment tranches related to theimplementation of three stages of technological work as part ofcooperation with Nano Dimension, the partner from Taiwan, as well asrevenues from the sale and lease of Delta Printing System devices, andthe sale of conductive nanoinks.

The above preliminary consolidated revenues from the sale of productsand services achieved in the fourth quarter and in 2022 are consideredinside information by the Issuer due to a significant change in theirlevel compared to the corresponding period last year.

The Company's Management Board emphasizes that the above figures areestimated and preliminary data, which means that they may ultimatelydiffer from those to be disclosed in financial statements.